The Home Environment Market Sees Growth
The Home Environment market is seeing favorable growth underpinned by strong housing demand, while eCommerce penetration continues to soar.
The housing market has proven to be a silver lining to the COVID pandemic. Quarantined consumers hunkered down and shifted spending to home investment while lockdowns and remote work reinforced demand for larger and more amenable living spaces to adapt to a new normal. Low interest rates have also stimulated demand, drawing buyers into the market.
Now two years into the pandemic, housing fundamentals remain strong and support what analysts call a “runway for a multi-year housing cycle upswing,” due to:
- Favorable Demographics – Millennials are entering the peak age for homeownership, accounting for the largest share of first-time home buyers, and homeownership rates will continue to increase.
- Deurbanization – COVID introduced new homebuying patterns with remote work serving as a catalyst for the shift from urban to suburban. More Americans are relocating from higher-cost to lower-cost metro markets, and out of cities to the suburbs, in search of larger housing footprints to accommodate home and work life, and this shift is expected to continue for several more years.
- A Hot Rental Market – Low housing inventory and strong demand have driven record-setting prices, dynamics which are fueling growth in the single-family rental market, which is seeing significant pent-up demand from renters and first-time and young home buyers.
- Growing Online Sales – COVID reinforced the already growing eCommerce penetration in the Home Environment category, which is seeing double-digit gains as consumer purchasing shifts online.
These trends provide a foundation for increased home investment and renovations, in turn spurring demand for home goods and furnishings.
Looking for a more in-depth analysis of the home goods & home environment market?
Contact our Branded Consumer Products Investment Banking Team
Interested in learning about upcoming opportunities in the home goods & home environment space? Led by John R. Tilson, BGL’s Branded Consumer Products team has the deep sector knowledge and extensive transaction experience that companies in the Branded Consumer sector have relied on for decades. Please reach out via our contact form to learn more.